saying smartrsity money is now in hedge funds.he universe are its investment in hedge funds, which now total of $13 billion, according to university filings. joining us to talk about the investment strategy is peggy ,ollins, investing team leader and soon to be revealed as something else. harvard university has decided hedge funds are the place to be again. is that something to do with the market cycle? andhe person leading the dominant to comment on the story. since he has come on in 2016 from columbia's endowment, he has upped their investment in hedge funds, which too many is a contrarian stance. hedge funds have been beaten down for seven years for poor performance compared to the skyrocketing s&p, and for high fees as well. those 2/20 fees have come under scrutiny. on the other hand, we did speak to some people who said it looks like he is positioning the portfolio for a downturn, as you said. this may be a proactive move to get the endowment in a place where if we see a recession come , and markets get more volatile, they wi

should set up a mutual or hedge fund in russia.skin of his teeth after throwing his hermitage fund in russia. his lawyer, sergei magnitsky, uncovered a [ inaudible ] committed by russian officials. he was arrested and tortured to death in a russian prison. bill browder is still wanted by russia but he is here with us on fox business. not only does he want you but he's asked interpol to grab you. >> not just once, or twice, but seven times. i was arrested last summer in madrid. i was in madrid to give evidence to the spanish prosecutor about putin's money laundering crimes and i got grabbed on a russian interpol arrest warrant. most recently after the european union started talking about sanctioning russia named after my lawyer, sergei magnitsky, they issued a seventh request to interpol. liz: what's happening this week or tomorrow? is interpol actually considering bringing you back? >> interpol is actively considering it after the seventh request, after rejecting the first six as being illegitimate and politically motivated. liz: w

headphones -- hedge funds are disclosing the 13f filings.big headlines have everything to do with berkshire hathaway. the news coming out that they of course added amazon. the size of the state, almost $861 billion. -- 806 to $1 million. soros fund -- 861 million dollar. the family offices back into stocks with 40 new positions. dell,ne: an exodus from it would sound like. romaine: "bloomberg technology" is coming up next. this is bloomberg. ♪ ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. ♪ : i'm carolarol massar in boston, in for emily chang, and this is "bloomberg technology." we explore health as we sit down with the ceo of bost

bob: what they look at is the yield they can get and the cost of the hedge back to the currency.t has pushed them into government bond markets with steeper yield curves, has pushed them into credit, it is one of the reasons, for example, they like european high-yield more than u.s. high-yield. they are at the point now where they have a lot of capital, have to get it invested. the cost of the hedge back to their base currency is not what it used to be, so they are willing to take dollar unhedged. krishna: there are some people who will take dollar unhedged, but the majority of large institutional buyers would probably look at it on a fully hedged basis. on that front, the reverse yankees are telling you where things are from a valuation standpoint. the dearth of supply in europe, demand for credit in europe, relative to what you can get on a hedged basis out of the u.s., i think is probably -- jonathan: i'm hearing more people signal appetite for european high-yield credit. is that the right approach? krishna: european high-yield, depending on the sector is perhaps cheaper than w

michael: i think it certainly works as a hedge. we've been speaking to clients over the last six months, since september of last year, about the value that u.s. treasuries offered when they are at 3.2%, and that you could see declines. obviously you have seen quite to give a get declines in the treasury since then, but still, as a hedge to the equity side of portfolios, if you are worried about downturn risk and the potential that the fed has to an rates meaningfully into economic slowdown, and that scenario you would expect the zero. drawdown close to as a hedge they still have some value even at these low levels, given some of the potential downside risk for the economy over the coming 18 months. vonnie: where do you see the 10 year yield in the u.s. bottoming? have you seen it? michael: i think it depends on the time horizon. as we say, if you look ahead to the next downturn, and i'm not saying i know exactly when that will be, but as we get later into the economic cycle, i think what you are seeing is that investors are more an

from goldman to hedge funds, nancy davis has ridden the wave of shipping investor cases.s why she is trying to etf her business. and next-generation vehicles. an etf on autonomous driving maybe shifting investor interest but it may not beat the stock market for now.

funds, first of all, the hedge funds i have been invested in, most of the money i have made in hedge funds, it's been that the strategy has been outside of equities. it's been in distressed assets it's been in '13, '14, mortgage-backed securities that's where the opportunities were and i guess the question, steve, a lot of the hedge fund community, their last stop is to pivot to a kwaun shop. i don't know if david ever made that move. you see a lot of people doing it and i don't know how successful they really are at doing that. >> you know, adam park was here. he went to eminence for quam and now he's launching their own shop. >> i think they're trying to figure out data to help, big data i can tell you dave's thought about it never made the move. but people don't have his view on the market and you sit with him and you think clarity. stevie cone did add a quant arm and a lot of quant dollars. >> are they having success with it >> i think a lot haven't when they have gone to a quant strategy and that's just experienced a flood of capital about four years ago unless you have that arm

he is maybe similar hedge fund bets at columbia, at penn.was in the harvard endowment sort of a hedge fund in and of itself? joe: and he got rid of some of internal hedge fund like trading operations. --hird of the endowment harvard hedge funds comprised a third of the endowment. yellen princeton, just 25%. there you go. romaine: we should point out that our story also points out that it had one of the worst average annual returns over the last decade among the ivy league's. i guess if you went to columbia, princeton, or yale, you finally have something to kind of hold over them. some quick breaking news here on aig. they did reduce earnings early. they did reduce expectations. the shares topping $50. that is the highest price since october. joe: coming up, outside of trump's this weekend, the winner of the kentucky derby was one of the most talked about events. actually, he tweeted about that, too. this is bloomberg. ♪ atoline: time for a look what stories are trending. the trump administration and how it may redefine the national poverty t

. ♪ good poker players make good hedge fund managers?re trying to answer that with a new research paper. bloomberg columnist aaron brown considered that in our latest piece. he joins us by phone. former head of financial research at aqr capital management and the author of a great book, "the poker face of wall street." poker are an avid player with experience in hedge fund management. what does the paper say and why would there be a connection between poker playing and generating alpha? aaron: that's a great question. when i talk to people about the paper, you get two diametrically opposed views. people who say that poker is exactly like hedge fund management. you have calculation under pressure, you have money management, you have psychological insight. and then people say it is totally the opposite. a hedge fund manager is very careful, risk-reducing numbers person, and poker is a risk-seeking activity, it is gambling, exactly the opposite of what you should do. well, three academics decided to try and find out. they did a very good, s

. >> one year of your investment committee meeting, i would like you to reevaluate hedge funds, hedge funds are a bad, high risk , long-term investment. i think they've only produced about three-point 5% for the last ten years, so for hedge funds to get a seven-point 4% return, you will need a gross return of more than 10%, and that is very unlikely to happen, so you should reevaluate your reasoning for investing in hedge funds, and divest from them, but not only that, they are bad investments, hedge funds are the poachers of the finance industry , and most of your board members are supposed to be prounion, what do hedge funds do just like poachers, they will take over the union company, kick out the union, sell off its valuable assets, bankrupt the company, kick the wages to the side wall, you have people from toys "r" us a few months ago telling you what you did to those employees, so get away from hedge funds. >> that takes us to item 11. >> presentation of preferred audited financial statement and required communications for the june 30, 2018 and june 302017. >> i will introduce y

just glory that the hedge fund managers are after?ably that that was the team on the block, my guess. [laughter] we don't know why he's doing this, but if he thinks it is getting away from nagging investors and focusing on football, he is in for a shock. he has to worry about cam newton's shoulder, somebody else's knee, somebody else's back, and from what i understand the carolina panthers are no new in the patriots. [laughter] joe: thank you very much. speaking of the ultra-wealthy, they have nearly $8 trillion hidden around the world. a french economist who advises elizabeth warren knows where to find it. joining us now, the writer of that bloomberg businessweek cover story. a know he's been writing for long time about hidden wealth and how the wealthy dodge taxes. elizabeth warren looked to him coming up with her wealth tax. he knows how to find it. where is it all? created,e's done, he's found all these new sources of data. we have a pretty good sense of how much income people are making at the top, because they have to report the

i really urge you to get away from the secrecy of the hedge fund and come back to normal, prudent and public stewardship. >> my name is john stenson. i am a 44 year member of our pension fund. i understand that you have reduced the rate on our pension fund asset from seven-point 5% and seven-point 4%. based on this, i cast low liquidity. the rates for retention should be at least 10% not seven-point 4%. you should be able to get a 7.4% from a low cost, moderate risk index fund, or a 60-40 balance fund. they need only to invest in three assets. stocks, bonds, real estate his, you only need of localized investment in these three asset classes. those of you who don't know what it is, it is somebody that believes in the investment philosophy of the late jack bogle who started the mutual fund. let me give you the past ten year returns of an investment in stocks, bonds, and real estate. ten year annual returns, 15.7%. vanguard 60-40, balanced fund, ten year return, 11.07%. vanguard of real estate index, ten year return, 18.17%. average return of these three funds is 15%, the management for

she began her own hedge fund. explains why she is looking at etf's for her business and one etf that caught our attention this week. the i-shares emerging market etf. as the trade war heats up, we are tracking equities and how it is bleeding money at the fastest pace, yanking more than $1 billion of fund on monday alone. you can find that chart and others we feature at gtv . this is bloomberg. ♪ scarlet: i am scarlet fu. this is "etf iq." it is time for this week's etf lifecycle where we cover the three main stages of etf's. step one is the filing. aberdeen starts the paperwork for three etfs using artificial intelligence. one fund focuses on u.s. equities, another on international development and a third on em. step two is the launch. the amplified peer-to-peer lending and crowdfunding etf begins trading under the ticker lend. the first one to focus on this space. unfortunately for some, the the final stage is liquidation. blue sky asset management will shutdown a trio of etf's after a group struggles to over

let's take a look at what is going on with the hedge fund industry.his performance against world equities, if you will, encz mark indexes on the -- benchmark indexes. there is a significant underperformance going on here, so that is essentially where we are going to go, and who better to talk to than -- yvonne: yes, we have got steve er -- eisman. he was in some movie called "the big short." thank you for joining us. tell us how hedge funds are doing this year. it was quite a bad year in 2018. how is your fund performing so far. eat the market and the hedge fund index, and this year, we are trailing. in an environment where markets go straight up, hedge funds tend to underperform, because you will do well on your longs, and if you have any shorts, there is underperformance. i tend to do better in more volatile environments. theaad: what about continued cost pressures? by has that been digested the industry, i suppose? steve: i think there is a very slow, relentless pressure on general. i think 10 years from now, fees in the hedge fund industry will pr

we were in new york recently we were talking about this in your office and we were discussing how hedge funds have got to look at bitcoin as an asset class because if they don't they might find themselves lagging their peers in 6 months or a year or so with the hedge funds coming into this i want to ask you since you last since you've launched the bitcoin investment trust has it now become an instrument for this hedge fund community barry not quite yet we're seeing 3 big groups of a vessel's right now we're seeing tech entrepreneurs who are excited about because it is a technology they can actually invest in the big investment trust via their iras now and so that's been exciting for that group of investors the next group or family offices so what's interesting is we're starting to see family offices who have a very diversified investment strategy long term time horizon taking a piece of their gold allocation putting it into bitcoin and then the 3rd. a group it's wall street professionals portfolio managers traders who are not yet investing for their clients or their lp money they're inv

we tend to hedge our bets. equities andu.s. debt.ommodities, natural resources, real estate, and precious metals. any a lack of conviction in one area specifically, it makes sense to hedge your bets in a number of ways. to increase your odds of having some success and maybe mitigate the risk of a drawdown. paul: thank you very much. there is plenty more to come on daybreak australia. this is bloomberg. ♪ shery: we are hearing that novartis is expected to buy cedro. that is the i drug. they were planning to sell -- sell this asset in order to cut debt after their shire deal. now we find out they are planning to buy for free $.4 billion in upfront raiment. they will take on 400 employees associated with the product. drugis a prescription i for adults with dry eye disease. that is the latest we have. for now, let's turn to walt disney. earnings beat estimates. profits fell 13% in the second quarter. analysts were expecting a deeper drop after disney's expensive move. let's bring in our guest. -- they have spent a lot of money on these n

he follows a raft of other hedge fund managers. why is this?r is it personal reasons, he has made his money and can do what he wants? >> the decision to convert his hedge fund and turn it into a family office isn't totally unexpected, but it is still a significant moment. of the $13 billion, a good chunk of it was david tepper's own money, but the fact that now he is thinking of returning outside capital draws, and into a significant air on wall street. like you mentioned, he has been running this hedge fund for 25 years and now he has other preoccupations. why now? for one, he has a football team to run. last year, he bought the carolina panthers. it is not much fun anymore. hedge funds have to deal with the nagging questions of investors. if you are a rich billionaire and if you have a lot of your own money, why deal with that headache? it kind of makes sense. ♪ taylor: if you you go into the bloomberg terminal, it really highlights with huawei in the middle year the suppliers for the company. it is a global list here, because you have chines

we are hedging everything back to the base currency, but you can find hedging opportunities by owning non-us dollar entities , non-us dollar corporate's, hedging them back to the base currency and ultimately picking back up a yield over equivalent u.s. dollar bonds. guy: using the dollar keeps going higher? one of those trades is obviously what is happening in europe. for a u.s. investor investing in europe, the pickup with the hedge is really big. i am just wondering whether you see that being maintained. it is well above what you would expect for a to mystic inspector -- for a domestic here in europe. nick: if the fed is looking to keep rates on hold, that is generally bearish for the dollar. however, the risk that we are seeing is that the dollar is appreciating because other central banks are moving to more dovish stance on a faster pace. owning dollar related securities -- be beneficial, beneficial, particularly for foreign investors. guy: do you see the ecb doing anything from here? draghi kind of pivoted a few months back. the data was looking bad at the start of the year, but

fund in the world he's the highest paid hedge fund there in america and he's looking around to. he has benefited or nor mislay that's why he bought i think he was lying about that two hundred thirty six million dollars apartment in new york now though as ken griffin that these hedge fund guys are able to spend two hundred fifty million on an apartment that was one hundred million just a few years ago they don't care somebody will buy five for five hundred million the more money you print an order because the population demands that the central bank prints more money to save the economy because that's what they're told or not told more importantly by rachel maddow and m s n b c they tune in there and they don't see all the money printing going on but he saying that there are some people some millennial are noticing you know those who are struggling to get by on their student loan debt and rents are so high and health care costs are prohibitive so they're the ones that are demanding m.m.t. the monetary modern monetary theory and beyond. predicts something called m p three which is

added underweight in the aussie dollar and the risk of hedge in general. specific, china hedge.nteresting you have made those changes. even though you have to invest over the long term sometimes you have to make those draft -- tactical decisions. i want to ask you about the em bonds. are you concerned you might miss out on any upside if there is a positive resolution? >> we are moderately overweight global equities. on a six to nine month basis, we expect policy will support markets. we are expecting support from monetary policy. looks like we will see a cut in interest rates. generally across the g10 the only central bank we see putting up interest rates is the -- bank. monetary policy continues to be supportive. we think it is prudent not to be overweight risk. manus: every time i get together with a cio from ubs -- but i love little bit of hedge and. this is the vix. nero brought my attention to this earlier. our last guest said the markets are too complacent. they have not got enough hedging. there is the short position, short on the vix is really showing a shine of -- a sig

why not keep this as a hedge fund to serve to show investors? why etf it?cy: first of all, it is a long only strategy. secondly, i think the whole passive-active thing, there's nothing wrong with passive or active, but when you are doing something new for the first time, and we are not replicating anything else, there is no index to benchmark. that is one of the challenges as an active etf, it is not as common to be put on platforms because they don't have a bucket looking for inflation expectations and fixed income volatility, and treasury inflation protected yield. it is not in the mean bucket, so i think active-passive, i don't really have an opinion there, but we are active because we are doing it for the first time. scarlet: nancy davis of quadratic capital management on this front. coming up, we look at an etf hoping to put a charge in the etf industry. cars focusing on the potential for electric and autonomous vehicles. this is bloomberg. ♪ ♪ scarlet: i am scarlet fu. this is "etf iq." for every etf that offers exposure to a theme, others are quickly

plate reportedly the community covers china and chinese companies is this all about hedging bets which any company would do or is it more about the trade war with the u.s. well i think it's a bit of both hedging bets it's doing it's it's doing what it needs to raise capital and again the last time as you mentioned it was in new york it was 25000000000 this time it's in hong kong it's 20000000000 the fact that they're going to hong kong bringing it back closer to home as it were at a time when there's a trade conflict with the u.s. this is clearly a signal and also a trade front is a report today of china warning superstring rare earth exports to the u.s. it isn't that one of its big boggling chips in this wall it is almost it's almost like they're lining up the ducks at the moment there's sort of you know the both sides in the trade war sort of entrenching themselves and getting ready for what could be a longer battle i think the. the rarest is definitely a big big weapon that they have at their disposal blish huge weapon because it's used in tech so the u.s. really relies on china doe

firmed --mberg had hedge fund reporter hume up armor, thank you.pear to be holding up. this is in spite of growing trade tensions. however, there are concerns faked into those latest numbers that there is not so great news. stephen engle has been breaking them down in hong kong. what are the key takeaways? reporter: these are two of the companies in the best triumvirate and they are keep layers globally. alibaba andou had the leader in e-commerce in china, and tencent reigning supreme in gaming and social media. however, as they are expanding businesses and user base, they are starting to mesh and crisscross into cloud computing, ai, and other areas including ch.te these companies are bitter rivals in many spaces. given the backdrop of the global trade war between china and the united states, consumer spending trends and the like. for the most part, the bottom-line for both companies, net income were good. however, there are revenue concerns at tencent. let's look at alibaba first. sales topping estimates in the quarter to march rose to $13.6 billi

with that in mind, what would be your go to hedge if you needed a hedge and you needed to do somethingic right now? fx, bye hedge via equity, or volatility? what do you reckon? how markets given are trading this morning, the cost of hedging today will be quite expensive. what we have been doing in april was actually using the options as protection on going forward. one of the things worth looking is gold. that is a place where positioning looks quite light. that might be an opportunity going forward. when i ask you about china and emerging markets, you said not necessarily the place you would be look because historically it is not always great if you are buying purely on valuation. where are you looking in the equity markets at the moment to get your best returns? of where we would start putting money to work, what we will try and do is look at asymmetric opportunities using structured opportunities and options. we see opportunities again in some of the growth. we have china exposure, but that is capital protected exposure from here. we think that is the right way to do it. trying to p

are the days of hedge fund over down -- of the hedge fund over now? >> roger: absolutely.pend more money to get a peace of it. -- piece of it. matt: what is the next beyond meat? what is the next ipo candidate? roger: if i had to do a wild guess, i would say impossible foods. i think that could be the next. matt: is it only about burgers? i see so many companies. replacements and other companies that look like they just want to make ,egetarianism sound appetizing which to a red-blooded american meat eater like me is a difficult sale. roger: it is a little bit about burgers at the moment. but beyond meet -- meat has an amazing sausage. the daily disruption is already over 50% in the united states. so there are products from fish, to beef, to pork, everybody is looking at every product. matt: what is the next big thing after burgers? roger: i think chicken is next. matt: so there can be a chicken replacement. roger: they are amazing. it is not in the market, chicken will be the next. matt: how widespread are these products becoming? we heard from our own correspondent about

wait, you're sonic the hedge hog? no, the other guy! eric swalwell? who's that? exactly! don't know any of these guys! it's so hard to get attention cory booker was almost run over during a speech and it barely made the news. >> senator cory booker's latest speech was interrupted by a minivan that careened into a building where he was speaking. >> your house republicans cast a bill -- ( crashing sounds ) >> police say this was an accident. senator booker went on with the event once the building was declared to be structurally safe. >> trevor: wow, that is crazy. cory booker is so boring he's making people who are not even in the room fall asleep. that woman was just driving past like, what's happening to me? ( laughter ) now, the police were saying this was just an accident, and that there was no ill intent. although if i was a terrorist and my plot failed, that's what i would say. i would play it off as an accident. probably happens more than we think. some guy tried to blow up starbucks and his suicide vest failed. uh, i would like a pumpkin spice -- latte -- please --

reportedly the community covers china and chinese companies is this all about hedging bets which any company would do or is it more about the trade war with the u.s. well i think it's a bit of bit of both hedging bets it's doing it's it's doing what it needs to raise .

that's right these hedge funds are simply not accountable and we're just adding more and more to them. totally destabilize the global economy you need to protect yourself and get in for god's guys or good. position folks go through a period of sort of total for the sake of the fist first bloody. murder would be yeah well the minute you did it was my job to the wildest. losing is its ability. to get rid of that all you want the solicitor going to the banana at the state it's a little bit silly was that mean that you all know paul. enough well it was pretty good way to lose a pet kind of what you say to him which could go down with the gun long ago but i come in. here do you leave the room ruth your money you know did you storm the lead here so my look down from moods should bastards in the clue which are coconspirators some are going to be. what politicians do something to. put themselves on the line to get accepted or rejected. so when you want to be president i'm sure. some want to be. the two going to be prosperous like them before three in the morning can't be good . i'm interested

the s&p 500, are you fully hedged?4% of bank of america merrill lynch surveyed that they are fully hedged. they also need to see the market dropped by another 18%. the battleground is 2800. you have got stockpiles versus geopolitics moving the oil markets. and dollar-yeah, a lovely note this morning. 100 .4 could be on the cards, crash test level. trade were still dominates headlines, the question comes whether this was a machiavellian plot to get the fed to cut rates. and if that was the case, how would markets react if we saw what would be called a defensive cut? that is what our guest refers to as. looking at the 10 year yield, we are not moving a lot. the nuclear option has always been that china might sell treasuries. not necessarily as a game plan, it may be a way to cap reserves and avoid capital flight. the aussie is not stable, hitting a four-month low down .2% following the china data. china's factories are walking wounded into a trade war. stocks on the front foot, we saw them gaining along with u.s. equitie

morgan you know what would be a good hedge against the bank stocks? about >> by the way, in case you're wondering about pete's fast pitch. pete lost. 74% of you said no to mohawk >> don't chase momentum, guys. don't! it's the>>> my mission is simple to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now >>> hey, i'm cramer. welcome to "mad money. welcome to cramerica people want to make friends, i'm trying to save you money my job is not just to entertain you but to educate and teach you and put this day in context so call me at 800-743-cnbc or tweet me at jim cramer some

whether you're going to hedge or buy call options because you are bullish, you want to time your hedgeso correspond with that press conference in mind. expiration isns the 21st, so it is important to time it. alix: dean, good to speak with you. coming up, it is a costly rivalry brewing in china. the second largest coffee chain goes public in efforts to compete against starbucks. the cfo joins us next. this is bloomberg. ♪ david: china's second largest coffee chain luckin coffee raised 506 to $1 million in its raised $561 million in its u.s. ipo. we welcome luckin's cfo and chief strategy officer. first of all, congratulations on the idea. -- on the ipo. guest: thank you very much. david: you have grown really fast in a short period of time. i talked to kevin johnson, the head of starbucks. he says you are a really good competitor, and the more the merrier. guest: that is a nice thing of him to say. what we are really trying to do and smallhnology locations to save cost on rental to bring down costs, and i think we've been quite successful there. to get that allows you high quality coffe